Kohl 1982-90

• In 1982 the FDP abandoned the coalition with the SPD and Schmidt and joined with the CDU/CSU led by Helmut Kohl. Kohl introduced new economic policies and returned to supporting the 'social market economy' as perceived by Erhard. Recognising the popularity of Ostpolitik, he reversed his party's former opposition by announcing his support for its continuation and development.
• Kohl called for new elections in March 1983, in which he was able to form a new coalition government.
• Kohl's government faced many difficulties, such as rising unemployment and social deprivation. It reduced government spending and introduced tax cuts that were to be implemented over 7 years. Annual budget increases were also kept below 3%. Despite this, he maintained high spending levels on welfare and kept subsidies to areas like farming and coal mining.
• Kohl was unwilling to risk the political stability to alienate too many groups of voters and avoided a radical programme that could impact too much on those who aspired to material wealth.
• After 1985, as oil prices declined, the FRG's exports began to rise, bringing in more wealth and the economy began to improve.
• The Flick Affair:

  The FDP finance minister resigned in 1984 because he had exempted the Flick Corporation from tax payments on the DM1.8 billion sale of shares. In return, the corporation had made financial donations to the FDP, possibly as much as DM500000. This scandal resulted in suspended prison sentences and hefty fines, but revealed that all the major parties had accepted money channelled through charitable donations and therefore exempt from tax. Despite a widespread media investigation, little changed.
• The Barschel-Engholm Affair:

  In September 1989, the media alleged that the president CDU leader, Uwe Barschel, had launched a plot to have his SDP rival, Bjorn Engholm, charged with tax evasion. It was even said that Barschel had arranged bugs in Engholm's office and had a private detective spy on him. Despite constant denials, Barschel was forced to resign in October. He was found dead 10 days later. Officially, he had committed suicide but those close to him alleged foul play. The media began an extensive campaign and Engholm was forced to resign in 1993.
• In 1987, the electoral position of Kohl and the CDU/CSU seemed precarious due to the scandals and continuing economic problems. Although he had manged to establish another coalition with the FDP, the CDU/CSU share of the vote had declined. Yet, the stability of the country and Kohl's government never seemed under significant threat.
• Kohl later became the first chancellor of the reunited Germany.